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Mintel Comperemedia sees direct mail used to reassure customers, encourage loyalty
Chicago (November 24, 2008)-Dwindling budgets haven't stopped banks from reaching out to clients through direct mail. During the third quarter of 2008, Mintel Comperemedia reports that the estimated number of banking direct mail offers sent to current customers rose 42% from Q2.
Banks sent approximately 53 million offers to their customers during Q3 2008, almost twice the number seen in Q3 2007 (29 million). This sharp increase in retention direct mail comes on the heels of the worst financial crisis in years. According to Diana Sheehan, Director of Research for Mintel Comperemedia, banks are relying heavily on direct marketing to communicate with and reassure their customers.
"Through Mintel Comperemedia's direct mail tracking panel, we've seen national and local banks alike increase their customer communication. With messages of security, honesty and understanding, banks are using direct mail to assure clients that their money is safe and protected," Diana Sheehan says.
Mintel Comperemedia saw major national banks like Bank of America and Citibank dramatically increase their banking direct mail volume to current customers in Q3 2008. But smaller banks also increased their retention marketing: regional players such as Parish National Bank and Webster Bank both sent more direct mail to current clients during Q3 than they did during Q2.
Across banking categories, Mintel Comperemedia saw retention direct mail increase in Q3 2008. The most notable rise was in the savings category: banks sent nearly 300 times more savings direct mail communications to current customers in Q3 2008 than they did in Q2. Checking direct mail volume for client retention also saw a significant 90% rise between quarters.
"As global financial markets shook, we saw many banks increase their direct marketing spend in an effort to hold on to the clients they had," notes Diana Sheehan. "Banks view direct mail as an effective channel for customer communication. So, as the market settles and financial institutions work to rebuild trust and profitability, we expect they'll continue with heightened direct marketing efforts to current clients, at least into early 2009."
Mintel Comperemedia also found that banks increased their direct mail offers to non-customers during Q3 2008-estimated banking acquisition mail volume rose 8% from Q2 2008.
Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence.
Joanna Peot
Public Relations Executive
312-628-7946
jpeot@mintel.com